The cellular provider's Any Apps announcement is both surprising and perhaps inevitable as the industry moves closer to open accessA move by Verizon Wireless to let customers use a broader range of cell phones and wireless features on its network was greeted by many observers as a stunning about-face. The No. 2 U.S. wireless service provider, which from the start has kept its network shut tight to what it considers unauthorized devices and services, suddenly was opening up.
When the new policy kicks in during the second half of 2008, subscribers are likely to have greater freedom to choose the devices and services they can use, and handset and application makers will probably get greater leeway in the breadth of phones and software they can build for the Verizon Wireless network. "This gives us the ability to tap into every innovative mind out there in the country," says Lowell McAdam, CEO of Verizon Wireless, a joint venture of Verizon Communications (VZ) and Vodafone Group (VOD).
But if the shift is an affirmation of consumer- and innovation-friendly openness, even more it's a reaction to the competitive pressures threatening Verizon Wireless and other mobile providers. The "Any Apps, Any Device" announcement helps Verizon Wireless steal thunder from other wireless upstarts—including Apple (AAPL) and Google (GOOG)—that are pushing for freer rein to offer their wares directly to mobile subscribers, leaving some analysts skeptical over just how open the Verizon Wireless network will be. "Several factors seem likely to keep the number of subscribers who actually opt for the open model down, which may limit its effectiveness as a force for change in the industry," say Ovum analysts in a Nov. 27 note.
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